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olya-2409 [2.1K]
3 years ago
6

1. Contrafic Corporation used the following data to evaluate its current operating system. The company sells items for $21 each

and used a budgeted selling price of $24 per unit. Actual Budgeted Units sold 180,000 units 185,000 units Variable costs $1,080,000 $1,295,000 Fixed costs $ 800,000 $ 775,000 What is the static-budget variance of operating income
Business
1 answer:
olga_2 [115]3 years ago
6 0

Answer:

 $470,000 F

Explanation:

The computation of the static budget variance of operating income is shown below:

Particulars  Actual results         Static budget         Static budget variance Units sold        180,000 units        185,000  units

Revenues        $3,780,000            $4,440,000             $660,000 U

Variable costs  $1,080,000            $1,295,000              $215,000 F

Contribution margin  $2,700,000   $3,145,000             $445,000 F

Fixed costs         $800,000              $775,000              $25,000 U

Operating income   $1,900,000     $2,370,000            $470,000 F

Note:

Multiply the selling per unit with unit sold to get the revenue amount

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Universal Containers email policy requires that all email traffic remain within its firewall. Currently, the company has 200 sup
allsm [11]

Answer:

Email to case

Explanation:

Email to case is an innovative platform that allows a company keep all emails within their network firewall.

It allows receipt of emails larger than 25mb from customers.

When customer's emails are received, they are turned into cases that can be tracked for easy resolution.

This will be a good solution for Universal Containers as it solves the problem of having emails within its firewall, and provides a way for the 200 support agents resolve customer challenges through cases generated.

8 0
3 years ago
Classify each of the following items as a final good or an intermediate​ good, and classify the expenditure on each final good a
klasskru [66]

Answer:

Classification of Goods

a.           Intermediate good; Investment

b.           Final Good = Consumption

c.           Intermediate good; Investment

d.           Intermediate good = Investment

Explanation:

An intermediate good produces a final good for consumption.  Intermediate goods are used for investment to generate more resources that can be consumed in the future.  A final good, in most cases, does not require further processing.  It is consumed immediately by the buyer.

5 0
3 years ago
Grove Inc. is a publicly traded chemical company that reported the following financial statements for the most recent year. $1,0
Oksi-84 [34.3K]

Answer:

FCFF = $335.50

Explanation:

Formula of Free Cash Flow to the firm ( FCFF) :

FCFF= Net Income+ Interest(1- tax rate)+ Depreciation+ working capital changes- capital investment

Now let us note some critical points and assumptions which are necessary to solve the question.

As the question says that the company will maintain its existing after tax return on capital invested next year, hence that means that the net income for the next year remains the same, which is $140.

It is also that the company expects it's Operating Income(EBIT) to increase by 6% every year, hence it's operating income(EBIT) for the next year will be $250*(1.06)= $265

Tax rate remains the same, that is, (60/200*100)= 30%

As there is no details with respect to working capital changes and any capital investment made, hence it is assumed to zero changes and no additional investment.

It is assumed that the depreciation method being followed is straight line method, hence depreciation value next year would be the same, that is, 150

Now let's finalise our income statement:

EBIT = $265 given in the question

Interest = ( $65) backward calculation

Taxable Income = $200

Taxes (30%) = ($60)

Net income = $140 given in question.

Hence our FCFF will be :

$ 140 + $65*(1-0.30) + $150 = $335.50

8 0
3 years ago
Acme-Jones Corporation uses a weighted-average perpetual inventory system. August 2, 24 units were purchased at $23 per unit. Au
Gnoma [55]

Answer:

Cost of goods sold= $816

Explanation:

Giving the following information:

Acme-Jones Corporation uses a weighted-average perpetual inventory system.

August 2: 24 units were purchased at $23 per unit.

August 18: 40 units were purchased at $25 per unit.

On August 29: 34 units were sold.

Weighted-average= (23 + 25)/2= $24

Cost of goods sold= 34*24= $816

5 0
3 years ago
XYZ Corporation loaned $600,000 to another corporation on December 1, 2020 and received a 3-month, 8% interest-bearing note with
jeka94

Answer:

Dr Interest Receivable 4,000

Cr Interest Revenue 4,000

Explanation:

Preparation of XYZ Corporation Adjusting entry

Since the XYZ Corporation loaned the amount of $600,000 to another corporation on December 1, 2020 in which XYZ Corporation received a 3 month and 8% interest-bearing note with a face value of $600,000, the first step to take is to find the interest bearing note which is calculated as 4,000(1/12×8%×600,000) and the second step is to record the transaction as :

Dr Interest Receivable 4,000

Cr Interest Revenue 4,000

(1/12×8%×600,000)

8 0
3 years ago
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